Nelson Wong

10th Sep 2013

Global Assembly & Packaging Market Overview

2Confidential

Israel, YoknaemBonding Tools R&D

Manual Wire Bonder Manufacturing

China, SuzhouBonding Tools Manufacturing

Blades R&D and ManufacturingSoftware R&D

Singapore (Corporate HQ)Ball & Wedge Bonder

R&D and ManufacturingAdvanced Packaging Bonder R&D

USA, Irvine (CA)Wedge Bonder R&D

USA, Fort Washington (PA)Equipment R&D

Advanced Packaging R&D

Switzerland, BergAdvanced Packaging Software R&D

K&S Manufacturing Plant

K&S R&D Center

Global Presence

K&S Sales/Service Office

3Confidential

ConnXIConnProCu

ConnX-LED

ConnX-VLED

Market Driven Products - Equipment

SoftwareManual Wire Bonders

iBond50004700452245244526

Ball Bonders IConn

3700Plus 3600Plus

Wafer LevelBonders

ConnXPlus

PowerFusion

Service

ATPremierPlus

4Confidential

Market Driven Products - Consumables

Wedge Tools Wedge Tools Ribbon Tools

Capillaries

E-

Capillary for Gold Wire Bonding

Capillary for CopperWire Bonding

Dicing Blades

Blades for Wafer Dicing

Blades for Package Singulation

Semiconductor Assembly Overview – Wire Bond Perspective

6Confidential

IC Package Assembly Market

Source : Prismark

IC Shipment had been growing steadily and continue to grow Growth driver – mobile and communication devices

7Confidential

Assembly Packaging Trend

IC growth is driven by mobile devices – hand-phone, media tablet, and notebook computers

There are more mobile phones than people on earth Demand for mobility and usability drives packaging

miniaturization – reduce weight and power consumption Mobile gadget gets smaller and increase functionality –

demand for more IC per unit, either integrated or/and smaller About 80% of IC packages are wire bonded – the balance

uses flip chip and other interconnect technologies Packaging cost drives the conversion of gold bonding wire to

copper - ~35% of packages are copper wire bonded

8Confidential

Semiconductor Fabrication Supply Chain - 2012

Semiconductor Industry$292B

Wafer Fabrication$123B

Design, G&A & Profit$91B

Test$34B

Assembly$44B

Assembly Process$26B

Assembly material$18B

Source : Prismark

Assembly Equipment

$4.2B

OSAT share of total assembly & test market : ~41%

9Confidential

IC Packaging Value

Source : Prismark

10Confidential

Packaging Demand

Demand for performance and mobility resulted Increased functionality per chip – higher I/O Squeeze higher I/O on a smaller chip – finer pitch Stacked die Smaller package size – lower package height – lower loop

Lower cost High density matrix packaging – larger LF configuration Copper wire More productive equipment

11Confidential

Ultra Fine Pitch Applications

70um pitch 25mm wire60um pitch 25mm wire

50um pitch 23mm wire

35um pitch 15mm wire40um pitch 18mm wire

45um pitch 20mm wire

28um

56um

Chip complexity and functionality integration increases I/O count per chip Chip size reduction means a finer pitch pad is necessary to pack all the I/O in

12Confidential

QDP

Looping Requirement

MCP(2 Chip)MCP-I(4 Chip)

DDP

SIP>8mil

Loop Height

<3mil >4mil

<2mil

Ultra Low LoopAdvanced Loop

Standard Package Small Size & High Density Multi-stacked & PoP Higher Stack >10 die

stacked

13Confidential

Ultra Low Loop

As mobile gadget gets smaller, packaging gets smaller and thinner Thinner packages and more complicated chip demand advances in packaging

technology – finer pitch, lower loop height, multi-layer wire, complicated layout

14Confidential

A Slow Start To High Volume Copper Ball Bonding – now at Full Speed

Early Development & Low Volume Production

Performance in High Power Devices (TO & SO)

Low Pin Count ICs (SOIC & PDIP)

High Pin Count ICs (BGA & QFP)

Increasing maturity of copper ball bonding process & cost advantage

early 1990s

1990s to early 2000s

Mid 2000s

High volume production started in late 2009

Late 2000s

15Confidential

Equipment, Tools, & Wire Knowledge

Process Knowledge

Process Stability

Gold to Copper Transition

High Volume Production

New Production Methods

Reliability Knowledge

Copper Wire TransitionC

oppe

r Bon

der I

nsta

lled

(K&

S)

16Confidential

Package CostCOMPARISON OF 500 CSP PACKAGING COST

(Assumes High Volume)

Gold Wire CSP0

10

20

30

40

50

60

70

80

90

100US Cents

Copper Wire CSP Flip Chip CSP 2-Layer

Wire28¢

86¢

70¢

Wire 7¢

Kc61

3.14

1bp-

com

paris

on50

0

Wire bonding

20¢

Wire bonding

24¢

Other Package Costs 8¢

Other PackageCosts 8¢

2-LayerSubstrate

30¢

2-LayerSubstrate

30¢

80¢

Bumping 15¢

Underfill10¢

OtherPackage

Costs 20¢

2-LayerSubstrate

35¢

Source : Prismark

17Confidential

K&S Wire Bonder Evolution

Finer pitch and higher productivity are values that helps improve packaging cost Pitch had reach its limit and productivity growth is expected to continue

18Confidential

Accelerates Copper Transition

K&S introduced IConn ProCuPS , an advanced copper wire bonder Faster throughput with specialized

copper processes, ProCu Bond and ProCu SSB

New process tools and features that make the complex capabilities easy to use

Robust solution enable customer to accelerate transitioning to copper wire bonding production R&D has shifted towards developing

solution that enable ease-of-use and capability to bond the latest technology node

19Confidential

IC Packaging Moving Forward

Wire bonded packages continue to dominate in the near future Most versatile and cost effective solution Copper wire had reduces packing cost significantly and had demonstrated

capability to bond on 28nm node chip – R&D on next node Conversion to copper is a necessity to be competitive, silver alloy wire is a

possible alternative Flip-chip will grow at a faster rate in the high performance chip segment –

CPU, GPU, AP,… IC performance requirement will drives FC growth despite the higher cost

Cost and package size will determine the mode of interconnect Material cost, efficient process, productivity are some of the cost driver R&D in wire bonding will continue to challenge the technological boundary to

stay relevant OSAT growth with exceed IC shipment growth – as fabless companies grow

and IDM outsource mode

20Confidential

This PowerPoint presentation

and all of its contents are protected under

International and United States Copyright laws.

Any reproduction or use of all or any part

of this presentation without the express

written consent of K&S is prohibited.